2008
YEAR TO DATE
TOTAL ACTIVE LISTINGS – 785 Units
Single Family Homes – 670 Units
Condos – 33 Units
Townhomes – 82 Units
SOLD RESALE LISTINGS FROM 01/01/2008 – 10/30/2008 – 663 Units
Single Family Homes – 472 Units
Low - $145,000 Average - $337,580 High - $1.8 mil Average Days on Market – 97
Condos – 65 Units
Low - $96,000 Average - $212,989 High - $321,000 Average Days on Market – 40
Townhomes – 125 Units
Low - $90,000 Average - $179,951 High - $300,000 Average Days on Market - 78
The preceding information does not include for sale by owner and rental properties and was generated from the Birmingham Multiple Listing Service. This information is deemed accurate but is not guaranteed.
Posted by Christina Rickey at 12:50 |
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Year-to-date and September 2008
Year-to-date and September home sales in the Birmingham area are down, as are prices, but we have some positive news. MLS inventory continues to move in the right direction with 11,578 listings in September compared to 13,560 in September 2007. This represents 1,982 fewer listings in MLS now compared to one year ago. The Year-to-date report shows the average price of Birmingham area homes has dropped 3% which is less than other markets around the country. Here is more news:
Total residential sales for September 2008 are 8% behind September a year ago. This may be significant because 8% is the smallest decrease in monthly sales we’ve seen all year. Each month for the first eight months of 2008 the decrease has been 27% on the average.
September 2008 total sales outnumbered August 2008 total sales. This normally doesn’t happen. September sales have always been fewer than August sales dating back to 1992. Traditionally this has much to do with end of the summer home buying season and the beginning of school.
September 2008 totals, however, are 1,172 compared to 1,146 for August or a 2% increase. What does this mean? It’s too early to say, but around the nation, the National Association of Realtors experts say increases in closings are expected. NAR says that there is a new momentum in the national housing market as buyers begin to take advantage of lower prices and affordable interest rates. As a counter-balance to this news, most economic reports are cautionary in light of recent events (Fannie Mae, Freddie Mac debacle, the government bail-out of Wall Street, bank failures, etc.). It’s anybody’s guess as to when buyers will get back into the market. Much still remains to be seen as to when this housing market bottoms out and the rebound starts-up.
SEPTEMBER REPORT
September 2008 Total Sales: 1,172
September 2007 Total Sales: 1,283
This represents an 8% decrease in total sales for this month.
This is significant due to the percentage of the drop each month for the first 8 months this year. The average decrease has been 27% each time.
The fact that total sales in September 2008 are only 8% behind September 2007 is significant.
Here is a quick look at September sales in recent years:
Sept 2008: 1,172
Sept 2007: 1,283
Sept 2006: 1,523
Sept 2005: 1,574
September 2008 Average Price: $182,955
September 2007 Average Price: $204,112
This represents a 10% decrease in average price for this month which is a significant drop.
The year-to-date average price is 3% behind last year at this time.
Here is a quick look at September average prices in recent years:
Sept 2008: $182,955
Sept 2007: $204,112
Sept 2006: $192,312
Sept 2005: 197,370
September 2008 Days on Market: 98* adjusted to exclude new home sales
September 2007 Days on Market: 101* adjusted to exclude new home sales
September 2008 Inventory: 11,578
September 2007 Inventory: 13,560
This represents 1,982 fewer listings in the MLS for this month
YEAR-TO-DATE REPORT (January through September)
2008 Total Sales: 10,227
2007 Total Sales: 13,937
This represents a 27% decrease in total sales
2008 Average Price: $193,305
2007 Average Price: $200,202
This represents a 3% decrease in average price
Still some good news…prices have not dropped lower than this point all year
2008 Median Price: $158,700
2007 Median Price: $161,400
This represents a 1.7% decrease in median price
2008 Days on Market: 99* adjusted to exclude new sales
2007 Days on Market: 94* adjusted to exclude new sales
YEAR-TO-DATE REGIONAL REPORT:
2008 SOUTH METRO AREA Total Sales: 4,792
2007 SOUTH METRO AREA Total Sales: 6,865
This represents a 30% decrease
These statistics compare total residential sales for September 2008 vs. September 2007 as well as Year-to-Date statistics as compiled by the Birmingham Area Multiple Listing Service, Inc. of the Birmingham Association of REALTORS®. Neither the Birmingham Association of REALTORS® nor its MLS guarantees or is in any way responsible for its accuracy. Any market data maintained by the Association or its MLS does not necessarily include information on listings not published at the request of the seller, listings of brokers who are not members of the Association or MLS, unlisted properties, rental properties, etc.
Posted by Christina Rickey at 08:07 |
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Year-to-date and August 2008 HOME SALES
Generated By
Birmingham Association of Realtors and its Multiple Listing Service
Year-to-date and August homes sales statistics of the Birmingham area residential real estate market continue to show signs of the sluggishness. Total sales are down, as are prices, yet there are some positive signs: MLS inventory continues to move in the right direction with 11,914 listings in August compared to 13,582 in August 2007. This represents 1,668 fewer listings in MLS now compared to one year ago. The Year-to-date report shows the average price of Birmingham area homes has dropped 2.6% which is less than what is happening in other markets around the country.
Government action has been taken to inject new life into the sluggish real estate market, including passage of the Housing and Economic Recovery Act of 2008, the takeover of Freddie Mac and Fannie Mae, and the recent boost in loan limits.
Current conditions are ideal for buyers. Year-to-date average prices in MLS show a 2.6% decrease. These conditions won’t last long. Now is a great time to make an offer on a home.
Mortgage loans are available. Contrary to perceptions, conventional mortgages are widely available.
Inventory is wide-ranging with many choices in prices and architectural styles.
We are listing and selling houses. Birmingham MLS members have sold over 9,000 homes since the first of the year. Don’t compare this year with last year or the year before because 2006 and 2007 were record sales years for our MLS.
What happens when someone buys a home? NAR Chief Economist Lawrence Yun reminds us that each home sold contributes to the GNP. Here’s a 2001 example…a typical first-time buyer spent $3,500 on furniture, carpet, painting, faucets and other items after purchasing a home. Trade-up buyers spent $5,000. Today these numbers would add up to much more. Income is generated when someone buys a home. An inspection is ordered along with a survey and title search. The home is appraised. The loan is closed. Moving trucks are on the scene. Everyone gets paid. Everyone spends some money. They may go to dinner at the local eatery. The restaurant makes money. The owner buys a new plasma screen TV. The electronics store manager makes money. He takes his family on a long-planned vacation. The resort he chooses makes money and hires an additional worker. This positive economic cycle takes place with the sale of each home.
AUGUST REPORT
August 2008 Total Sales: 1,146
August 2007 Total Sales: 1,690
This represents a 32% decrease in total sales for this month
August 2008 Average Price: $189,587
August 2007 Average Price: $193,646
This represents a 2% decrease in average price for this month
August 2008 Median Price: $150,300
August 2007 Median Price: $159,900
This represents a 6% decrease in median price for this month
August 2008 Days on Market: 94* adjusted to exclude new home sales
August 2007 Days on Market: 96* adjusted to exclude new home sales
August 2008 Inventory: 11,914
August 2007 Inventory: 13,582
This represents 1,668 fewer listings in the MLS for this month
YEAR-TO-DATE REPORT (January through August)
2008 Total Sales: 9,055
2007 Total Sales: 12,659
This represents a 28% decrease in total sales (same decrease for the past 3 months)
2008 Average Price: $194,598
2007 Average Price: $199,713
This represents a 2.6% decrease in average price
Still some good news…prices have not dropped lower than this point all year
2008 Median Price: $159,100
2007 Median Price: $161,100
This represents a 1% decrease in median price
2008 Days on Market: 100* adjusted to exclude new home sales
2007 Days on Market: 93* adjusted to exclude new home sales
YEAR-TO-DATE REGIONAL BIRMINGHAM METRO REPORT:
2008 NORTH Total Sales: 637
2007 NORTH Total Sales: 789
This represents a 19% decrease
2008 SOUTH Total Sales: 4,295
2007 SOUTH Total Sales: 6,225
This represents a 31% decrease
2008 EAST Total Sales: 2,466
2007 EAST Total Sales: 3,459
This represents a 29% decrease
2008 WEST Total Sales: 1,657
2007 WEST Total Sales: 2,186
This represents a 24% decrease
These statistics compare total residential sales for August 2008 vs. August 2007 as well as Year-to-Date statistics as compiled by the Birmingham Area Multiple Listing Service, Inc. of the Birmingham Association of REALTORS®. Neither the Birmingham Association of REALTORS® nor its MLS guarantees or is in any way responsible for its accuracy. Any market data maintained by the Association or its MLS does not necessarily include information on listings not published at the request of the seller, listings of brokers who are not members of the Association or MLS, unlisted properties, rental properties, etc.
Posted by Christina Rickey at 04:38 |
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I know t
he headlines are confusing, and you are wondering is the bailout of Fannie Mae and Freddie Mac a good thing for the American people? What will this do to the Birmingham housing market? Will the Americans be paying for this bailout in the long run? Since the announcement on Sunday by Treasury Secretary Henry Paulson and Federal Housing Finance Agency Director James Lockhart that the government had placed Fannie Mae and Freddie Mac under conservatorship, I have been doing a lot of reading by professionals in the mortgage industry, economists, and other real estate colleagues. I have read the headlines, scaled the blogs, and discussed the issue. The following is the easiest and most informative explanation I could find. To keep you informed, I thought it would be good to pass it on to you:
After meetings with the boards of directors for both organizations, the Federal Housing Finance Agency took control of Fannie Mae and Freddie Mac which are instrumental in securing home loans. To clear up some confusion, you may be asking who are Fannie Mae and Freddie Mac? Fannie Mae and Freddie Mac are government-sponsored enterprises that are involved in more than half of all the real estate financing in the United States. They do that by buying loans from banks and packaging those loans as mortgage-backed securities, then selling those securities. By purchasing the loans from banks, the banks get the capital to make new loans. The sale of mortgage-backed securities by Fannie and Freddie has been hurt by concerns over subprime loans and the higher-than-normal default rates on mortgages.
Fannie and Freddie are involved in $5.4 trillion worth of mortgage debt. To give you an idea of how huge that is, it is more than the amount of the privately held national debt of the entire United States. In the past four months, Fannie Mae and Freddie Mac have been involved in 80 percent of the financing of home purchases. In short, if you want to get financing to buy a home, you need Fannie Mae and Freddie Mac.
What did the government do? They replaced the leadership of these two organizations: Herb Allison, a former vice chairman of Merrill Lynch, was selected to head Fannie Mae, and David Moffett, a former vice chairman of US Bancorp, was picked to head Freddie Mac. The hope is that the rest of the staff will remain in place, and Fannie’s Daniel Mudd and Freddie’s Richard Syron, the former leaders of each organization, have agreed to stay on during the transition.
The government is going to buy $5 billion in mortgage-backed securities held by Fannie and Freddie. This will provide more capital for each organization. The Treasury Department said it will immediately be issued $1 billion in senior preferred stock from each company, but eventually the Treasury could be required to put up as much as $100 billion for each organization over time if the funds are needed to keep the companies afloat. This infusion guarantees that each organization will remain solvent, assuring that financing for real estate purchases will not be thrown into chaos. The government also will receive warrants representing ownership stakes of 79.9 percent in each firm. The existing stockholders will be subordinate to this obligation to pay the federal government, so the $36 billion in outstanding stock for these companies just moved down a notch to be in second position to the federal government. This puts those shares in the position of junk bonds, according to Standard and Poor’s ratings.
In the long run, the government wants to shrink the size of Fannie and Freddie, with their portfolios shrinking by 10 percent per year starting in 2010. All lobbying will cease; all dividends will stop; and other cost-cutting measures will be instituted to make these institutions more efficient.
One of the biggest problems in the real estate industry is the availability of financing. The government will infuse up to $100 billion into Fannie and Freddie to see them through. This move makes financing more certain, and lets real estate agents stop worrying about whether they can get loans for their buyers. Just the certainty that loans are available is valuable, and the prospect of getting better interest rates is appealing. The loss to the taxpayers is debatable! In general, this is good news for the real estate industry and benefits the stability of real estate.
Only time will tell the effects on our local real estate market. It will be interesting to watch in the coming months. In the meantime, interest rates have fallen on Tuesday to 5.65%; and with a glut of inventory on the market and attractive pricing, now is a great time to buy a home! If you know anyone on the fence thinking about buying a home, please give them my name and direct them to my website at www.newhomebham.com or click on my website tab above. Now is a great time to jump into the game!
Excerpts of this article were obtain from Inman News
Posted by Christina Rickey at 08:47 |
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The following is to keep you informed about Birmingham’s over-the-mountain real estate market in zip code 35242. This area comprises Liberty Park to the north to Highland Lakes on the south:
Total active listings as of September 5, 2008: 817 homes
Active by price range:
$100,000 - $200,000: 59 homes
$200,000 - $300,000: 228 homes
$300,000 - $400,000: 136 homes
$400,000 - $500,000: 112 homes
$500,000 - $600,000: 66 homes
$600,000 - $1,000,000: 142 homes
Over $1,000,000: 69 homes
Total number of active foreclosures: 23 homes
Pending Sales: 66 homes
Year to Date Closed Sales 2008: 661 homes
Year to Date Closed Sales this time Last year: 837 homes
Low: $145,000
Median: $305,500
Average: $379,059
High: $1,558,014
Days on Market: 86
Average sold month of August: 71 homes
Low: $130,000
Median: $330,000
Average: $393,769
High: $1,837,000
Days on Market: 62
The preceding information is generated directly from the Birmingham Multiple Listing Service and does not include for sale by owner sales and rental property: This information is deemed accurate but is not guaranteed.
Posted by Christina Rickey at 02:57 |
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If you or someone you know is a first time homebuyer or you have a son or daughter who has been thinking about purchasing a home, now may be a great time. Inventory is high, interest rates are still low and pricing is attractive. To better keep you informed of what is happening in the housing sector, I want to share with you an article from the Washington Post regarding the IRS tax credit recently enacted as part of the Housing and Economic Recovery Act of 2008:
Purchasers can shave as much as $7,500 off their IRS bills, though it must be repaid.
By Kenneth R. Harney, Washington Post Writers Group
August 3, 2008
WASHINGTON- Anyone who’s been sitting on the sidelines hesitant to jump into the housing market until conditions settle down should know these dates: April 9, 2008 through June 30, 2009.
They mark the eligibility perio
d for the home purchase tax credit created by the housing bill enacted last week. If you have not owned a house during the last three years – or are considering buying a first home—and you close on a purchase before the end of next June, you may be eligible for a credit of as much as $7,500 against your federal taxes for 2007 or 2009 ($3,750 if you file taxes as a single person).
The next tax credit is expected to benefit hundreds of thousands of buyers. Here’s an overview of the specifics.
The Basic Idea: To jump start housing sales and clear out stocks of unsold real estate, Congress is offering tax credits to encourage new purchasers. Buy any house – new, old, in any location or condition or for any price – within the designated time period and the IRS will cut as much as $7,500 off your tax bill this year or next. For example, if you’re an eligible buyer of a home this year and you owe the IRS $4,000 on your total 2008 income tax bill, your $7,500 tax credit could wipe out everything you owe plus get you a $3,500 refund.
Eligibility Rules: If you own a home now, you are not eligible. If you sold your home more than three years ago and now rent, you are eligible. The same is true if you have never owned a home. Close on a house before next June 30 and you can claim a credit of up to 10% of the purchase price to a maximum of $7,500. If your adjusted gross income exceeds $150,000 ($7,500 for singles), the credit maximum begins to phase down. You cannot claim the credit if you financed the property using a state or local housing agency’s tax-exempt bond mortgage, or do not plan to use the house as your principle residence.
Payback: Unlike some past tax credits, this one must be repaid over an extended period. Starting in the second tax year after purchasing and continuing for up to 15 years, taxpayers are expected to make pro-rata repayments to the government on their federal filings. Over a 15 year period for the full $7,500 credit, the cost would be $500 a year. If you sell the house before the end of the repayment period, and you have no gain on the sale, you won’t be expected to repay the remainder of the credit from the proceeds. If you have a new gain, the “recapture” cannot exceed the amount of your gain. In other words the federal government is taking on all or much of the risk that the value of your new house won’t increase over time.
At its core, the new tax credit works very much like an interest-free loan. You pay the principal back in increments over time, but there is no interest charged to you.
Rob Dietz, an economist for the National Association of Home Builders, says the credit not only will pull first time buyers into the market but also will have a powerful “multiplier effect” as thousands of sellers of these credit assisted houses go out and purchase replacement homes for themselves – extending the effect of the credit into the move-up segment.
How do you claim the credit? If you qualify, you simply request the credit on your tax return for either 2008 or 2009, which will be modified for that purpose.
Even if you purchase in 2009, you can take the credit against your 2008 taxes by filing an amended return. The home builders group is launching an educational website, at www.federalhousingtaxcredit.com, with additional information for consumers.
Posted by Christina Rickey at 10:14 |
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Today’s real estate market is challenging, to say the least. As a real estate professional, it is my job to be aware of home preferences for the buyer and stay on top of the latest trends. Statistics in the Birmingham real estate market indicate it is still a buyer’s market and there is quite a lot of inventory for them to choose. So, what is today’s buyer looking for in a home. Buyers do not want boxed off spaces like living room and dining rooms. They are looking for a lot less formal living areas and they want personal spaces. Since most of the homes in Birmingham are traditional with formal living and dining rooms, what is a seller to do. Where other realtors showing a home may see a living room or dining room, I see a home office, library, home theater or music room. According to the National Association of Realtors, living rooms are a dying breed. Looking into the future, by the year 2016, the living room will have vanished. Today’s savy home buyer is also looking to add living spaces outside which include upscale landscaping, fireplaces, kitchens, gazebos, and courtyards. For privacy purposes, fences and walls are becoming more popular. Maximizing your home’s interior and exterior spaces with modest changes is wise. Improvements to kitchens and baths will always obtain a return on your home improvement dollars. Real estate is ever changing, the up or downturn of a market is local, and our home is our most prized investment. When considering remodeling for personal enjoyment or updating to sell, it is important to know the trends.
Posted by Christina Rickey at 10:59 |
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MID-YEAR & JUNE 2008
HOME SALES
After 7 consecutive record growth years, mid-year and June homes sales statistics of the Birmingham area residential real estate market show that things have slowed down considerably. Total sales are down, as are prices, yet there are some positive signs: MLS inventory is moving in the right direction with 12,580 listings in June compared to 13,294 a year ago. The Mid-year report shows the average price of Birmingham area homes has dropped only 2% which is significantly less than what is happening in other markets around the country. It’s a buyer’s market here, with many homes to choose from in all price ranges.
Other positive signs have been noted. Foreclosures in the Birmingham metro area dropped 17 percent in June 2008 compared to a year ago. Birmingham’s foreclosures place the city 97th out of a list of 100 major U.S. cities surveyed. The state of Alabama is 45th out of 50 for foreclosures (source: RealtyTrac).
Realtors are listing and selling houses. Birmingham MLS members have sold over 6,700 homes since the first of the year. Don’t compare this year with last year or the year before because 2006 and 2007 were record sales years for the Birmingham MLS.
Current conditions are ideal for buyers. Prices have moderated. Year-to-date average prices in MLS show a 1.6% decrease. These conditions won’t last long. Now is a great time to make an offer on a home.
Inflation fears are in the news. Despite the fact that interest rates are low; sellers are motivated; and prices have moderated, many buyers are still sitting on the fence, waiting for things to “bottom out.” Inflation fears are in the news. Waiting is a risky game. If monetary policy shifts to combating inflation, mortgage rates may go up.
Mortgage loans are available. Contrary to perceptions, conventional mortgages are widely available.
Inventory is wide-ranging with many choices in prices and architectural styles.
Home ownership is the best investment. Home ownership has been – and continues to be – one of the best investments. Nine out of ten Americans consider home ownership to be a sound financial decision. Real estate has delivered the most consistent positive return over any other investment over the last 40 years.
JUNE REPORT
June 2008 Total Sales: 1,253
June 2007 Total Sales: 1,929
This represents a 35% decrease in total sales for this month
June 2008 Average Price: $196,504
June 2007 Average Price: 208,767
This represents a 5.4% decrease in average price for this month
June 2008 Median Price: $164,400
June 2007 Median Price: $170,000
This represents a 3.5% decrease in median price for this month
June 2008 Days on Market: 93* adjusted to exclude new sales
June 2007 Days on Market: 89* adjusted to exclude new sales
June 2008 Inventory: 12,580
June 2007 Inventory: 13,294
This represents 714 fewer listings in the MLS for this month
MID-YEAR REPORT (January through June)
2008 Total Sales: 6,702
2007 Total Sales: 9,317
This represents a 28% decrease in total sales
2008 Average Price: $194,000
2007 Average Price: $198,597
This represents a 2% decrease in average price
This may be a bit of good news…prices have not dropped as much as markets elsewhere
2008 Median Price: $159,600
2007 Median Price: $159,900
No statistical variance…again, a bit of good news
2008 Days on Market: 103* adjusted to exclude new sales
2007 Days on Market: 93* adjusted to exclude new sales
MID-YEAR REGIONAL REPORT:
2008 NORTH Total Sales: 480
2007 NORTH Total Sales: 590
This represents an 18.6% decrease
2008 SOUTH Total Sales: 3,191
2007 SOUTH Total Sales: 4,548
This represents a 30% decrease
2008 EAST Total Sales: 1,803
2007 EAST Total Sales: 2,553
This represents a 29% decrease
2008 WEST Total Sales: 1,228
2007 WEST Total Sales: 1,594
This represents a 23% decrease
RESIDENTIAL INVENTORY IN MLS:
YEAR/MONTH: TOTALS FOR SALE:
2008:
June 12,580
May 12,458
April 12,365
March 12,121
February 11,919
January 11,757
2007:
December 12,642
November 12,979
October 13,438
September 13,560
August 13,582* highest recorded
July 13,477
June 13,294
May 13,183
April 12,895
March 12,524
February 10,840
January 10,330
These statistics compare total residential sales for June 2008 vs. June 2007 as well as Year-to-Date statistics as compiled by the Birmingham Area Multiple Listing Service, Inc. of the Birmingham Association of REALTORS®.
Neither the Birmingham Association of REALTORS® nor its MLS guarantees or is in any way responsible for its accuracy. Any market data maintained by the Association or its MLS does not necessarily include information on listings not published at the request of the seller, listings of brokers who are not members of the Association or MLS, unlisted properties, rental properties, etc.
Posted by Christina Rickey at 08:28 |
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You have heard on the news about the Fannie Mae and Freddie Mac Bill endorsed by President Bush and passed by the US House of Representatives with a vote of 272-152 on Wednesday. The bill will now move to the Senate for a vote this week-end. As a real estate professional, I thought it important for you to read what is being said about this bill. I will share with you what is being said pro and con to the bill.
First, here is an article forwarded to me by RISMedia with a pro point of view to the bill. RISMedia is a leading real estate resource and the publishers of the Real Estate Magazine, a trade journal for real estate professionals:
By Avrum D. Lank
RISMEDIA, July 25, 2008-(MCT)-The House approved a sweeping housing bill Wednesday that would provide tax credits of up to $7,500 for first-time home buyers and help an estimated 400,000 strapped homeowners avoid foreclosure.
The measure also would prop up troubled mortgage giants Fannie Mae and Freddie Mac, by giving the Treasury Department the ability to extend them an unlimited line of credit and buy up some of their stock, if necessary. The two companies back or own nearly half of the nation’s mortgage debt.
Hours before the vote, President Bush dropped his opposition to a provision offering $3.9 billion in block grants to help local communities devastated by foreclosures. With the White House’s support, the bill is likely to pass the Senate and become law this week.
A spokeswoman for Milwaukee Mayor Tom Barrett said the city intends to apply for some of the block grant money.
The 272-152 vote reflected a congressional push to send election-year help to struggling borrowers and to reassure nervous financial markets about the health of Fannie Mae and Freddie Mac.
The bill includes a program to help financially distressed homeowners refinance mortgages under better terms, by encouraging lenders to voluntarily restructure those mortgages. Lenders would agree to take less, and borrowers would agree to split any profits from the eventual sale of their home with the government. Borrowers could not get a second mortgage for five years.
The Congressional Budget Office estimates the program would cover about 400,000 homeowners with mortgages totaling $68 billion.
The bill also would include:
–A $7,500 tax credit for first-time home buyers.
–A $500 to $1,000 deduction for 2008 property taxes for people who don’t itemize deductions on their tax returns.
–Higher limits, up to $625,000, on mortgages insured through Fannie and Freddie. A temporary limit of $729,750 until Dec. 31 would remain in place.
The backing for Fannie and Freddie is “a massively important provision” because it will help to restore confidence to the mortgage market, which has been buffeted by a large number of defaults, said Joe Murray, director of political and government affairs for Wisconsin Realtors Association in Madison.
Congressional analysts estimate that a rescue of the mortgage giants could cost $25 billion, and perhaps more, but they predict there is a better than even chance it will not be needed.
Murray said the other parts of the bill aimed at providing direct help for homeowners and potential buyers also will help the market.
Details of how the $3.9 billion in block grants would be distributed were not immediately available, but the city of Milwaukee already is planning how to use the money, said Eileen Force, press secretary for Mayor Barrett. Barrett was out of town on a family vacation Wednesday.
Among the city’s objectives for the money would be increasing the percentage of foreclosed properties that are sustained as primary residences, reducing the share of evictions that are foreclosure-related, and lowering the number of vacant properties, Force said in an e-mail.
U.S. Rep. Gwen Moore (D-Wis.), who represents Milwaukee, said she was pleased with the bill.
“The legislation provides the tools necessary to our local governments to address the blight of widespread foreclosure (and) it also gives working and low-income families access to affordable and sustainable housing,” she said in a statement.
But U.S. Rep. Paul Ryan (R-Wis.), whose district includes southern parts of Milwaukee County, voted against the measure, saying he objected to its provisions to stabilize Fannie and Freddie.
“This bailout plan aggravates the fundamental problem that led us here: Fannie and Freddie remain for-profit corporations but still enjoy a federal guarantee at the taxpayers’ expense against any risk of loss,” he said in a statement. “To force Americans already struggling to make ends meet to take on this risk is a dangerous precedent.”
Wisconsin’s delegation voted along party lines, with Democrats Moore, Tammy Baldwin, Steve Kagen, Ron Kind and David Obey voting in support, and Republicans Ryan, Tom Petri and Jim Sensenbrenner opposed.
In all, 45 House Republicans voted in favor of the bill.
The legislation gives Treasury Secretary Henry Paulson power to inject capital into Fannie and Freddie and provides for a federal agency to insure refinanced home loans. Paulson overcame opposition to the bill within his own party, such as that expressed by Ryan.
Democrats were more supportive.
“This is the most important piece of housing legislation in a generation,” Senate Banking Committee Chairman Christopher Dodd (D-Conn.) told reporters in Washington.
Senate Majority Leader Harry Reid (D-Nev.) said earlier he aimed to get it through the Senate by the end of the day. The bill is “a very good piece of legislation,” he said. Sen. Jim DeMint (R-S.C.) threatened to delay that schedule if he can’t amend the legislation, his spokesman Wesley Denton said.
Rep. Barney Frank (D-Mass.), who chairs the House Financial Services Committee, helped steer the bill after backing Paulson’s call for the emergency measures for Fannie and Freddie, which would last through 2009.
Lawmakers, intent on limiting any losses to taxpayers, tied the potential aid to the federal debt limit. Still, they also raised that ceiling to $10.6 trillion from the current $9.815 trillion in the bill.
Washington-based Fannie and McLean, Va.-based Freddie own or guarantee about half of the $12 trillion of U.S. home loans outstanding. The companies face mounting losses stemming from the collapse of the subprime market.
Also standing to benefit from the legislation are companies such as General Motors and Northwest Airlines. Provisions in the measure would allow unprofitable companies to use tax credits that they have already accumulated to make investments in their businesses and work force.
An economic stimulus plan approved earlier this year included tax breaks that gave companies an incentive to increase their capital investments. But lawmakers who represent manufacturing states said it left out companies such as General Motors Corp. and Ford Motor Co. that have not been profitable.
Automakers, manufacturers and other companies that qualify for the tax credits would benefit by as much as $30 million for making the investments this year.
Lawmakers said automakers could benefit from the tax changes as well as airlines; manufacturers such as Goodyear Tire and Rubber Co. and Owens-Illinois Inc.; and energy companies such as CMS Energy Corp., A
rch Coal Inc., and Murray Energy Corp.
Reacting to the passing of this legislation, Speaker Nancy Pelosi said, “The bill the House takes up today, if enacted, will represent the most far-reaching reform of our nation’s federal housing finance system in a generation…Owning a home is an essential part of the American Dream. It’s not only about what it means to individuals, it is what it means to the community, putting down roots. It is what it means to the economy as we take an interest in our homes and make them habitable. By expanding homeownership opportunities and protecting families against foreclosure, we are helping keep the American dream of owning a home alive. By restoring confidence in the housing market, our economy can begin to grow and create jobs for the American people again.”
What’s more, the National Association of Realtors® President Dick Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif said, “Realtors® are in the business of building communities, and our 1.2 million members understand that this legislation will go a long way in helping people buy and keep their homes,” said NAR President Dick Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. “We look forward to prompt Senate action to finalize this bill, helping ensure that every American who can afford to own a home and wants to do so will have the opportunity and that everyone who responsibly owns a home is able to keep it. This bill must get to the president quickly, and we urge him to act immediately to sign it into law.”
“The $7,500 tax credit for first-time home buyers is a needed stimulus for a weak housing market,” said Gaylord. “This bill would extend the tax credit availability through June 2009, which would have a further positive effect on the housing market.”
Bloomberg News and The Associated Press contributed to this report.
Copyright © 2008, Milwaukee Journal Sentinel
Distributed by McClatchy-Tribune Information Services.
For an opposite point of view, Republicans in the House who voted against passage of the Housing Bill, did so because they say it will place US Taxpayers money at risk! In the US Senate, there is concern that the Housing Bill does not have any language in it to prevent “Fannie Mae and Freddie Mac from lobbying”. It is being said that a big conflict of interest is being created to have a company being bailed out by the US Government with Taxpayers’ money. Republicans feel the passage of this Bill will leave the US Taxpayer on the hook for countless billions of dollars.
The following was sent to real estate professionals, lenders, etc. on Friday from Senator Shelby (R-Ala):
July 25th the Senate will vote on the stimulus package that was passed by
Congress yesterday. Over the last few days it was brought to our attn that if
this passes it will kill all Down Payment Asst Programs. They are assuming that
FHA only accts for 9 0/0 of Mtg transactions. This would be fact up until March
of 08 when Fannie and Freddie ended all 100 0/0 transactions. As of April our 10
to 15 mill of production has completely swaped to over 80 0/0 FHA. Our pipelines
are full of FHA Down Payment Asst Program clients, this will be a disaster to
the nations housing market. If your not familiar with loan limits here in
Alabama it is 270k in other parts of the country it is as high as 700k and these
are customers with good jobs and great credit. This will not just effect Alabama
but every state should have the same outcome. I believe they are working off
data from earlier this year and is very important that they address this before
they make the biggest mistake since the start of the housing crisis. The
majority of the clients effected are not currently invested in the housing
market and is our best source for decreasing our nations tremendous inventory.
The part that bothers me the most is the fact that we are substituting a
customer that is able and willing to buy and afford a home with one that has had
a chance to be responsible and in most cases has and always will be a
irresponsible . They where in this shape when the original loan was made and was
given a opportunity to for a second or in some cases a third chance. I do
understand that our financial markets may not be able to with stand and may be
necessary to extend these losses to later point when our economy has gained
ground and becomes stable. However we are giving up the good to put a band aid
on the bad. With out the good to help offset the bad we will set ourselves up
for much greater loss in the near future. We need to stop the seesaw, knee jerk
reactions and deal with changes that are balanced and informed.
THIS HAS TO BE STOPPED!!!! WE HAVE TO ACT TONIGHT OR FIRST THING IN THE
MORNING!!!!!
Call and ask all to do the same. Call and call often. Phone lines are open and
receptive.
Senator. Shelby 202-224-5744
The preceding information is provided for your information only. The contents of this information is neither supported or opposed by the writer.
Posted by Christina Rickey at 10:58 |
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Gimmicks, give aways and doing nothing will not sell your home! We all know that selling your home in today’s challenging real estate market is difficult to say the least. This is not the same real estate market we all enjoyed just a couple of years ago. However, there are buyers out there. The numbers are down, but people will always need shelter. As an exclusive buyer’s agent, buyers tell me what is on their minds. With the housing inventory high, it can be like going into a candy store for a ready, willing, and able buyer. I have seen builders giving away car leases and including trips to exotic places; and still the inventory stands. I have also seen existing home owners advertise flat screen televisions as an incentive for a viable contract. Home sellers–gimmicks, and give aways do not work! The top five reasons homes do not sell, counting down from No. 5 are:
5.) The condition of the home—well maintained, freshly painted, uncluttered, nicely landscaped homes sell. A little bit of money and elbow grease can go a long way to a quick sale. If you do nothing, and hope that by a prayer your home will sell, think again. There is a huge amount of inventory available, and many consumers will not go past the front door if they see clutter, damage and neglect. Why throw in a flat screen television as an incentive to obtain a contract when adding new carpeting or fresh paint will go so much further?
4.) Do you have the right listing agent? A part time agent will not work in today’s market. It takes more time, talent, and resources to get the job done. Although I do not list homes, I can guide you to the best listing agents in our area who I personally endorse in doing a great job. These agents will not sugar coat their opinions. They will tell you what you need to hear, not what you want to hear. In selecting a listing agent, marketing is key. The agents I will direct you to will be pros when it comes to marketing your listing.
3.) Make sure your home is always available for showings. A relocation buyer may have a small window to view houses, or a local consumer, can only look on week-ends. Your home needs to be clean and ready to show on a moment’s notice. You cannot afford missed opportunities in today’s market.
2.) Location. Location is very important. If you have it, count your blessings. Location will always be at the top of the list when buyers purchase.
THE #1 REASON TO GET YOUR HOUSE SOLD IS PRICE. Good pricing always sell houses. A house priced right will sell faster than homes priced too high. In this market, you cannot go by what a house sold for 6 months ago. Real estate is local, and some markets are better than others, but many buyers are still waiting to buy, thinking the prices may come down further. If the price is slightly lower than a similar home down the street, you will get more people interested. No contracts, no showings—always consider the price.
You do not have to resort to fancy gimmicks and give aways!
Posted by Christina Rickey at 10:43 |
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Christina Rickey 
